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RES-ORA-0325 Renewing the Mobilehome Park Rental Assistance ProgramRESOLUTION NO. ORA 0325 A RESOLUTION OF THE ORANGE REDEVELOPMENT AGENCY CONFIRMING AND RENEWING THE MOBILEHOME P ARK RENTAL ASSISTANCE PROGRAM FOR MOBILEHOME PARK RESIDENTS OF THE CITY OF ORANGE AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH WHEREAS, California Health and Safety Code Sections 33334.2 and the Redevelopment Plans fc)r the Tustin Street, Northwest, and Southwest Project Area(s) (the "Project Area(s)") as adopted and thereafter amended by the City Council of the City of Orange authorize and direct the Orange Redevelopment Agency (the "Agency") to expend not less than twenty percent (20%)of all taxes which are allocated to the Agency pursuant to Califomia Health and Safety Code Section 33670 for the purposes of increasing, improving, and preserving the community's supply of low and moderate income housing available at affordable housing cost to persons of low or moderate income and very low income; and WHEREAS, pursuant to Califomia Health and Safety Code Section 33334.2the Agency has established a Low and Moderate Income Housing Fund (the "Housing Fund") in connection with each ofthe Project Area(s); and WHEREAS, pursuant to Califomia Health and Safety Code Section 33334.2 in carrying out its low and moderate income housing activities, the Agency is authorized to provide subsidi~: s to or for the benefit of very low income, lower income and low or moderate income households and to maintain the community's supply of mobilehomes; and WHEREAS, Section 33334.2of the Califomia Health and Safety Code provides that Housing Fund monies may be used outside the Project Area(s) if a finding is made by resolution of the Agency and the City Council that such use will be of benefit to each ofthe Project(s); and WHEREAS, pursuant to Resolution No. ORA 0019 and Resolution No. 6026 adopted November 22, 1983 for Tustin Project Area; Resolution No. ORA 0113 and Resolution No. 7079 adopted June 14, 1988 for the Amended Tustin Prqject Area, Resolution No. ORA 0058,Resolutllon No. 6654 adopted July 8, 1986 for the Southwest Project Area, Resolution No. ORA 7086, Resolution No. 0115 adopted June 21, 1988 for the Northwest Project Area, Resolution No. 7097, Resolution No. 0117 adopted June 28, 1988 for the Southwest Project Area, the Agency and City Council found that the use of taxes allocated from specific redevelopment project areas for the purpose of housing outside those Project areas, will be of benefit to those project areas; and W1IEREAS, pursuant to Resolution No. ORA 0193 adopted December 12, 1989, the Agency approved on a one-year pilot basis a Mobilehome Park Rental Assistance Program (the Program") authorizing the expenditure of Housing Fund revenues to finance the Program and provide rental subsidies to very low income mobilehome park residents; and ORA 0325 1 - WHEREAS, pursuant to Resolution No. ORA-0220 adopted January 8, 1991, Resolution No. ORA-0237 adopted January 28, 1992, Resolution No. ORA-0256 adopted November 10,1992, Resolution No. ORA-0274 adopted December 14, 1993, Resolution No. ORA 0283 adopted December 13, 1995, and Resolution No. ORA-0298 adopted December 12, 1995, the Agency approved the continuation of the Program; and WHEREAS, in implementing the Program, the Agency has successfully assisted up to fifty (50) mobilehome park residents and funding has been budgeted to continue the Program to assist the current twenty- two (22) Mobilehome Park participants; and WHEREAS, the Agency desires to confirm and renew the Program as more particularly described in the accompanying Agenda Item and to authorize the expenditure of additional Housing Fund monies pursuant thereto as more particularly described below.NOW, THEREFORE, THE ORANGE REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:1. The Agency finds and determines that expenditure of Housing Fund revenues for rental subsidies to eligible, very low income persons and families as defined by Section 50105 of the Califomia Health and Safety Code residing in mobilehome parks as contemplated by the Program shall directly and specifically benefit and protect the community's supply of low and moderate income housing, particularly the supply of mobilehomes, available at affordable housing cost to persons and families of low and moderate income, reducing the housing costs otherwise paid by very low income mobilehome residents, allwithin the meaning of Section 33334.2 ofthe California Health and Safety Code.2. The Agency finds and determines that the commitment and expenditure of Housing fund monies to pay for rental assistance pursuant to the Program, is specifically authorized by subsections (8) and (10) of Cali fomi a Health and Safety Code Section 33234.1(3)and further that such assistance is not classified as new construction or substantial rehabilitation and is therefore not subjectto the requirements of Section 33334. 2(e) of the Califomia Health and Safety Code.3. The Agency hereby finds that the expenditure of Housing Fund revenues from the Project Area(s) to fund the Program will be of benefit to the Project(s).4. Based on the above findings and determinations, the Agency hereby confirms and renews for an additional five-month period, the Mobilehome Park Rental Assistance Program as described in Exhibit "A" hereto and incorporated herein by reference and further directs and authorizes staff to administer the Program as IV. JELIGIBILITY Participant will be required to provide proof of income, rental and household expenses, and coach registration. Should rent be below $449.00, the resident will be encouraged to apply with the Orange County Housing Authority (OCHA) to receive assistance through the Section 8 Program. Rental Assistance payments provided through the Mobilehome Park Rental Assistance Program will be terminated upon acceptance of participant to the Section 8 Program. A. General No member of the governing body of the City or the Agency, and no other official employee or agent of the City or Agency who exercises any policy decision-making function in connection with the Program shall directly or indirectly be eligible for the Program.B. Income Participant eligibility will be determined based on facts submitted on the application and verified by Agency staff. The Program is targeted to those households living in mobilehome parks in the City and having incomes at 50% or less of the median income, adjusted for family size, and paying more than 50% of their income for housing costs. Household income includes wages, tips, pensions, assistance payments both public and private,investment income from assets (dividends and/or interest), social security,commissions and royalties for all household members living in the dwelling. The Agency staff will request appropriate information substantiating all income sources and eligibility; information is to include income tax returns. Residents will cooperate in providing information to assist in the verification process.C. Housing Costs Eligible participants must provide evidence that they are paying in excess of 50% of their income for housing costs. Housing costs will include space rent, rent or payment for the coach, if any, utilities, homeowners insurance,and registration fees or property taxes, if any.A space rent limitation of $515.00 became effective February 1, 1993.Participants whose rents exceed this amount are not eligible for the Program. For purposes of this Program, the limitation of $515.00 shall be EXHIBIT " A"Page deemed to include all remuneration payable by a Participant to the mobilehome park owner, whether characterized as rent or otherwise. V. pROGRAM FUNDING LIMITATIONS AND CONDITIONS Participants will be informed that the Program is approved for a five-month period.Sufficient funds have been appropriated through June 30, 1997. The annual cost of the Program is approximately eighty-five thousand dollars ($85,000). There is no guarantee that the Program will be continued after five-months. New applications for the Program were no longer accepted as of December 18, 1990.All Participants will be required to sign a disclaimer certifying that they understand these conditions, that participation in this Program may adversely affect their subsequent eligibility for Section 8 assistance, and that if they receive this assistance, it may be considered income by the Internal Revenue Service. At the end of the five-month period (commencing February 1, 1997 and ending June 30, 1997), the Agency will determine whether to continue the Program based on an evaluation of Program performance, as well as budgetary limitations and funding constraints at that time.The rental assistance payment will be in the form of a monthly check to the eligible participants from the Agency. Should the Program be extended for an additional fiscal year, a review of each participant's eligibility will be required. At that time, the participants will be interviewed by Agency staff to determine continued eligibility and, if eligible, to recalculate the monthly rental assistance amount. b:mp# 1 :moblJprogstate96 ADOPTED this 26th day of November 1996. ATTEST: J ~/ I..I'/?~ Ai?~~. {4fi./"AU/:~Clerk, Orange Red elopment Agency hereby certify that the foregoing Resolution was duly and regularly adopted by the Orange Redevelopment Agency at a regular meeting thereof held on the 26th day of ovember , 1996.AYES: DIRECTORS: MURPHY, BARRERA, COONTZ, SPURGEON, SLATER NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE ABSTAIN: DIRECTORS: NONE I A> ORA 0325 3 - EXHIBIT" A" ORANGE REDEVELOPMENT AGENCY MOBILEHOME PARK RENTAL ASSISTANCE PROGRAM PROGRAM STATEMENT I. pROGRAM PURPOSE The purpose of the Mobilehome Park Rental Assistance Program (the "Program") is to assist very low income mobilehome park residents who earn less than 50% of the median income and who pay more than 50% of their income for housing. The Program will provide a monthly subsidy payment representing the difference between the household's monthly housing costs and 30% of the household's income. Such payments will be made directly by the Orange Redevelopment Agency of the City of Orange (the" Agency") to the mobilehome park resident. II. ;LEGAL AUTHORITY AND ADMINISTRATION The Program was adopted by the Agency in December 1989 on a one-year pilot basis pursuant to the California Community Redevelopment Law ( California Health and Safety Code Sections 33300 et. seq.) and has been subsequently confirmed and renewed for additional one-year periods. The Program is funded through Redevelopment Housing Set-Aside funds.III. NOTIFICA TION/ APPLICATION Participants will be notified by mail to reapply for assistance through the Program.Participants must demonstrate that they meet the income criteria, pay more than 50% of their income for housing expenses, and currently live in the mobilehome park. Each application will reflect the time and date received, and will be processed in that order. The application, together with all other materials relating to eligibility, will be maintained in an active file for each participant.EXHIBIT "